Following Australian PM Scott Morrison's comments on 19 April regarding the country's road to net-zero emissions, Wood Mackenzie Asia Pacific Head of Markets and Transitions, Prakash Sharma, said:
"Australia’s desire to achieve net-zero emissions by 2050 is a step in the right direction. Australia’s major trading partners – China, Japan and South Korea – are already in transition towards that goal. That means Australia will need to retool its commodity exports industry to align with the Paris climate targets.
"Our analysis shows that Australia can reach net-zero emissions before 2050. Although the pathway requires complete transformation of its traditional energy and export sectors, there are new opportunities to capitalise on.
"This will require Australia to become a significant player in low-carbon hydrogen trade as well as being able to offer carbon storage and offset services. Total carbon removal capacity reaches approximately 200 Mt per annum by 2050 in Australia.
"Nearly 83% of power generation comes from solar and wind by 2050 as compared to about 20% last year. Natural gas, bio energy, geothermal and small modular reactor will supply the remaining 17% in power output. Coal into power is expected to be phased out by 2035."